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HOUSTON-Weatherford Plaza, a class A stabilized building, has rolled into the portfolio of Moody National Cos. The 216,215-sf office building sits in the North Belt/Greenspoint submarket, where similar assets have traded for $150 per sf to $175 per sf.

Brett Moody, chairman and CEO of Moody National Cos., says the dealmakers were the like-new finish-out and solid upside potential. “We set aside $2 million for additional TIs and leasing commissions, but the building is in excellent shape,” says Moody, whose company acquired the asset at 15710 JFK Blvd. from KBS Realty Advisors of Newport Beach, CA.

On the tenant side, Weatherford International Ltd., FMC Technologies Inc. and Kraton Polymers US LLC take up 70% of the 1985-constructed building with long-term leases averaging 10 years. Moody tells GlobeSt.com that the remaining tenancy has three- to five-year leases. Moody National will manage the 90%-leased building and outsource the leasing assignment.

“The majority of the building was leased out in the $19 per sf range. Class A space of this caliber is $21 per sf in this submarket,” Moody says. As leases roll over the next five years, he says rents could be bumped as high as $23 per sf if the market and demand live up to expectations. “We saw minimal rents with long-term leases in place from the three long-term companies,” he explains, “and when the majority of the other leases roll, there’s our increase.”

Moody National is picking up the acquisition pace, with more closings in the Houston area planned before this quarter ends. The company also is seeking class A assets on the East and West coasts.

Teddy Dykoski, Moody National’s acquisitions associate, negotiated the buy side. Ken Page, senior director with Cushman & Wakefield of Texas Inc., represented KBS Realty Advisors.

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